Today marks the first anniversary of the start of the Red Sea crisis as well as the 1,000th day since the start of the war between Russia and Ukraine - two events that have shaken the shipping industry.

On 19 November last year, Houthi militants attacked the Bahamian-flagged Galaxy Leader, taking the car carrier and its 25 crew members hostage, kicking off a long campaign against international merchant shipping that has seen more than 120 vessels attacked by drones and missiles, and the Red Sea becoming a no-go zone for a significant portion of the international merchant fleet.

Another anniversary this Tuesday that has reshaped global sea trade routes is the 1,000th day since the start of Russia’s invasion of Ukraine, a military campaign that has changed shipping patterns in the Black Sea, as well as rerouting Russian exports and marking a significant increase in the so-called “shadow tanker fleet.”

It would be no surprise if new flashpoints flare up in 2025

“The Russia/Ukraine war and the Red Sea crisis are both examples of a world where geopolitical instability is on the rise,” said Lars Jensen, CEO of consultancy Vespucci Maritime, who has been providing daily updates on the Red Sea shipping crisis via LinkedIn for the past year.

“Looking at 2025 it appears that we might see the Russia/Ukraine war find an uneasy solution whereas there is no indication that the Red Sea crisis has a short-term solution,” Jensen told Splash, adding: “Furthermore, the increasingly volatile geopolitical reality means that it would not be surprising if new flashpoints flare up in 2025, impacting shipping.”

“Shipping, trade, marine safety, and not least seafarers have become hostages to those who do not put any value on human life,” commented Michael Gray, one of the world’s most respected shipping commentators.

Last month’s Maritime CEOs’ Meeting at the Monaco Yacht Club opened with a new session titled The Big Issues, in which two shipowners, a manager and an analyst were asked about how the 2020s are shaping up to be one of the most disruptive decades for shipping in living memory.

I don’t remember any other time, at least in recent history, where we have two active major conflicts going on at the same time. You’ve also had two of the major canals, the Panama Canal and Suez Canal, disrupted, China potentially going through its worse economic slowdown, and at the same time, we have all these regulations kicking off,” Burak Cetinok, head of research at Arrow Shipbroking, told the exclusive, invite-only group of shipowners. Graham Porter, chairman of Tiger Group Investments and one of the co-founders of Seaspan, warned attendees: “The world is breaking apart. I think that’s what’s causing all this chaos. We’re on a very different trend. It’s no longer collaboration, it’s independent pull. Pull your resources and hold them yourself.”

“The roaring twenties will have many more seismic shifts to come,” René Kofod-Olsen, CEO of ship management company V.Group, predicts, joking: “You don’t enter shipping to have a quiet life.”

Jan Rindbo, CEO of Danish shipping giant Norden, notes that today’s global fleet is built for a fully optimized trade.

“This is why we have great markets because we’ve seen this fragmentation with Russia, Red Sea or whatever it is,” he explains. “So I think fragmentation will mean you need more ships to transport the same volume of cargo.”

Below is a chart created specifically for the Maritime CEO Forum, highlighting the key events that have shaped the increased volatility the shipping industry has faced in recent years.

See more:

• International shipping and logistics market update - Week 46/2024
• Long Beach Breaks Record with Nearly 1 Million TEUs in a Month
• Port of Hamburg reaches 5.8 million TEU in the first nine months of the year
• COSCO SHIPPING's investment in Chancay Port in Peru begins operations
• ILA Cancels Contract Talks with US East Coast Ports
• Port of Melbourne sees container volumes increase in September
• Trump Wins US Presidential Election – 10 Key Questions for Container Shipping
• International shipping and logistics market update - Week 45/2024

Source: Phaata.com (via Splash247)

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International shipping and logistics market update - Week 46/2024

Drewry’s World Container Index for the week of 46/2024 remained stable compared to the previous week, at USD 3,440/FEU. This freight rate index is 142% higher than the average of 2019 before the pandemic (USD 1,420).

Drewry’s World Container Index Week 46/2024 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

Ocean freight rates from Asia to the West Coast of North America in week 46/2024 to $5,060/FEU, down 1.58% week-on-week and 8.23% month-on-month, according to Xeneta data.

Voyage volumes from Asia remained high in the first two weeks of November, partly due to anticipated rate hikes and a potential ILA strike expected in early January, along with the 2025 Lunar New Year. Rates continued to fluctuate on routes between China and Southeast Asia, putting increased price pressure on routes to the US West Coast.

East Coast sailings are at normal levels, but some carriers and service lines are full or facing capacity constraints through November.

Flat rates and Peak Season Surcharges (PSS) remained stable in the first half of the month, although some PSS adjustments are likely due to short-term market volatility.

Canada:

Canadian ports in Montreal and Vancouver are reopening after Canadian Labour Minister Steven MacKinnon took decisive action to end the strike on November 12.

Meanwhile, the British Columbia Port Workers Union has announced plans to challenge both the Canada Labour Relations Board’s order ending the strike action and the Minister’s forced arbitration.

In the United States, ILA announced on Wednesday (November 13) that it had ended negotiations with USMX after talks on Tuesday in New Jersey stalled over proposals related to automation and semi-automation at ports. The two sides had aimed to reach an agreement on a new six-year main contract.

Asia-US West Coast Freight rate | Week 46/2024 (Image: Phaata.com)

2. Asia - Northern Europe route:

Freight rates from Asia to North Europe in week 46/2024 fell to $4,048/FEU, down 1.22% from the previous week, up 15.49% from the previous month, according to Xeneta data.

Space is limited in the second half of November due to many canceled sailings and the number of containers being transferred to later sailings. Carriers are expected to cut 15-18% of capacity in November, with ten sailing cancellations announced so far, which will continue to impact market supply.

With bookings postponed to avoid arrivals during the Christmas and New Year holidays in Europe, the November GRI may not materialize and carriers are instead preparing for the December GRI, which is expected to be at USD3,900/20'GP and USD6,000/40'GP.

Along with the expected price increase, SCFI increased by USD100/TEU to USD2,541/TEU in week 46. Another small increase is expected next week, with rates likely to stabilize or decline based on the December GRI developments.

There are sporadic equipment shortages at major ports in China but they are still manageable. For shippers who need to secure space and an expected time of departure (ETD) can consider choosing the "premium" service of the shipping lines.

Asia-Northern Europe Freight rate | Week 46/2024 (Image: Phaata.com)

3. Northern America - Asia route:

Freight rates from North America (West Coast) to Asia in week 46/2024 continued to increase slightly by 1.70% compared to the previous week, reaching USD 718/FEU, a price increase of 2.43% compared to the previous month, according to Xeneta data.

US West Coast - Asia Freight rate | Week 46/2024 (Image: Phaata.com)

4. Northern Europe-Asia route:

Freight rates from North Europe to Asia continued to decline slightly in the week of 46/2024 decreased slightly to USD 352/FEU, down 0.56% compared to the previous week, and down 9.97% compared to the previous month, according to Xeneta data.

Northern Europe - Asia Freight rate | Week 46/2024 (Image: Phaata.com)

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Read more:

• ILA Cancels Contract Talks with US East Coast Ports
• Trump Wins US Presidential Election – 10 Key Questions for Container Shipping
• International shipping and logistics market update - Week 45/2024
• New Container Ship Orders to Rise by Over 50% in 2024
• Concerns over Trump presidency impact on container shipping rates
• Maersk's Q3 Profit Soars Despite Modest Increase in Container Volume
• Sea-Intelligence: Global Schedule Reliability Drops to 51.4% in September
• COSCO schedules: Vietnam - North America in Nov 2024
• SITC updates Vietnam-Intra Asia sailing schedules in Nov 2024
• Pacific Lines updates domestic sailing schedules in Nov 2024

Source: Phaata.com 

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Port of Long Beach, United States

The Port of Long Beach moved nearly 1 million TEUs in October, marking the busiest month in the port’s 113-year history.

The record volume was driven by strong demand for holiday cargo and container vessel delays due to a nearby traffic incident and fire that impacted operations at several terminals in late September.

“We appreciate the hard work of our waterfront workforce and terminal operators as they continue to move cargo at a record-setting pace by moving nearly 1 million TEUs without congestion or backlogs,” said Mario Cordero, CEO of the Port of Long Beach.

In total, the California port handled 987,191 TEUs in October, up 30.7% from the same month last year and surpassing the previous monthly record set in August 2024 by 8%.

Specifically, imports increased 34.2% to 487,563 TEUs, while exports increased 25.3% to 112,845 TEUs. At the same time, the number of empty containers moved increased 28.1% to 386,782 TEUs.

October marked the fifth consecutive month of year-over-year cargo growth for the Port of San Pedro Bay, which handled 7,904,564 TEUs in the first 10 months of 2024, up 20.2% from the same period in 2023. “Our string of recent records demonstrates the strength of our customer service and ongoing collaboration with labour and industry stakeholders. Our top priority is to quickly move goods from the docks to doorsteps and store shelves as we head into the busy holiday shopping season,” said Bonnie Lowenthal, Chair of the Long Beach Port Commission.

See more:

• Port of Hamburg reaches 5.8 million TEU in the first nine months of the year
• COSCO SHIPPING's investment in Chancay Port in Peru begins operations
• ILA Cancels Contract Talks with US East Coast Ports
• Port of Melbourne sees container volumes increase in September
• Trump Wins US Presidential Election – 10 Key Questions for Container Shipping
• International shipping and logistics market update - Week 45/2024

Source: Phaata.com (via ContainerNews)

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Port of Hamburg, Germany

Container throughput at the Port of Hamburg reached 5.8 million TEU in the first nine months of 2024, remaining at roughly the same level as the previous year.

A slight increase was recorded in the handling of loaded containers, along with growth in overall cargo.

“Rail forwarding, a cornerstone of sustainable transport, also showed positive development during this period. As Europe’s largest rail port, we attach great importance to the expansion of rail transport. Container transport in this segment rose by 2.7% and the Port of Hamburg also gained ground in terms of total rail tonnage,” said Axel Mattern, Member of the Executive Board of Port of Hamburg Marketing (HHM).

Despite these achievements, Germany's weak economic performance continues to weigh on the port's overall throughput. The challenging political context, including the ongoing war in Ukraine and recent Houthi attacks in the Red Sea, has exacerbated these difficulties. As a result, total seaborne cargo volumes fell by 3% to 84 million tonnes between January and September 2024.

Full container throughput at the Port of Hamburg reached 5.1 million TEU in the first nine months of 2024, a slight increase of 0.2% compared to the same period last year. In contrast, empty container throughput decreased significantly, down 4.6% to 722,000 TEU.

Total container throughput reached 5.8 million TEU, down slightly by 0.4%. In terms of tonnage, container throughput totaled 58.2 million tonnes, down 0.1% year-on-year.

The temporary diversion of ships around the Cape of Good Hope has led to an increased use of western ports as transshipment hubs for Asia-Mediterranean trade. However, Hamburg has not benefited from this shift in container traffic.

On the brighter side, the general cargo segment showed significant growth, up 3.7% to 904,000 tonnes. This segment, known for its potential for value-added, continues to be a bright spot for the overall performance of the German port.

In addition, China remains the Port of Hamburg's strongest trading partner from January to September 2024, with throughput of 1.6 million TEU. Trade with the United States, the port’s second-largest partner, also grew, up 7.6% to 520,000 TEUs. Brazil recorded a 2.6% increase, reaching 124,000 TEUs, while Mexico increased by 3.5% to 81,000 TEUs, highlighting another positive trend.

In addition, seaborne trade with Poland, the fourth-largest partner, grew by a significant 16%, to 232,000 TEUs. Malaysia, ranked ninth, showed the most significant increase, with a 29.8% increase to 144,000 TEUs.

See more:

• COSCO SHIPPING's investment in Chancay Port in Peru begins operations
• ILA Cancels Contract Talks with US East Coast Ports
• Port of Melbourne sees container volumes increase in September
• Trump Wins US Presidential Election – 10 Key Questions for Container Shipping
• International shipping and logistics market update - Week 45/2024

Source: Phaata.com (via ContainerNews)

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Chancay Port, Peru (Source: AmericaEconomia)

Located along the central coast of Peru, approximately 78 km north of Lima, the Port of Chancay marks COSCO SHIPPING's first green and smart port investment in South America.

The inauguration ceremony took place in Peru on November 14, with Chinese President Xi Jinping and Peruvian President Dina Boluarte attending via video link.

This natural deep-water port benefits from its strategic geographical location and efficient logistics connectivity. At 1,500 metres long, the port comprises four berths – two dedicated to container handling and two multi-purpose berths – capable of handling the largest container vessels in the world.

Designed with a throughput capacity of 1 million TEUs, 6 million tonnes of bulk cargo and 160,000 vehicles per year, the facility incorporates flexible storage, warehouse and logistics areas, while a 1.8-kilometre tunnel connects the port directly to the Pan-American Highway.

The Chancay Port features advanced intelligent handling equipment, including fully electric container trucks, which reduce energy consumption by more than 25%. Following successful trials, plans are underway to develop a regional logistics distribution centre at the COSCO SHIPPING Chancay Peru Container Terminal. Two direct shipping routes between Shanghai and Chancay will reduce the transit time from Peru to China to just 23 days.

In addition, a new ro-ro service is expected to establish a major automotive distribution hub in South America. Phase I of the Chancay Port Project is expected to create more than 8,000 direct jobs. The port’s project office has also launched wildlife rescue centers, actively rehabilitating penguins, seals and various bird species, while enhancing the ecological health of nearby wetlands, coastlines and natural habitats.
 

See more:

• ILA Cancels Contract Talks with US East Coast Ports
• Port of Melbourne sees container volumes increase in September
• Trump Wins US Presidential Election – 10 Key Questions for Container Shipping
• International shipping and logistics market update - Week 45/2024

Source: Phaata.com (via ContainerNews)

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ILA Cancels Contract Talks with US East Coast Ports

Union Says Port Employers Want Automation in New Longshoremen’s Agreement

The International Longshoremen’s Association (ILA) has canceled contract talks with US East and Gulf Coast port employers, accusing them of including automation technology in a new labor agreement that would eliminate union jobs.

This week, the ILA and employers represented by the United States Maritime Alliance resumed negotiations on a new six-year master contract that would cover 45,000 union workers who handle containers at dozens of U.S. East and Gulf Coast ports.

In a statement posted to social media and later deleted, the ILA said that during meetings in New Jersey, “USMX introduced language in their proposal for semi-automated equipment to be used at ILA ports, which this union outright rejected. The ILA recognized this as a renewed attempt by USMX to eliminate ILA jobs with automation and broke off talks.”

The ILA has been adamant that it will not allow automation technology as part of the new contract. A three-day union strike in early October halted container handling at 36 port facilities and threatened the flow of billions of dollars in cargo. The strike ended when Biden administration officials convinced the parties to agree to extend the current contract through January 15 while negotiations continued.

“The ILA’s resolve remains strong not to surrender any ILA jobs,” the union said. “We are disappointed that USMX would attempt to disregard our ILA’s well-known position opposing job-cutting automation and semi-automation. Once again, employers who are raking in billion-dollar profits annually have exposed their ultimate goal of wanting to eliminate as many ILA jobs as possible, and replace our ILA longshore workers with robotic equipment.”

By the time the strike ended, the union and employers had agreed to a 62% wage increase over the life of the new contract.

“While we had positive progress on a number of issues, we were unable to make significant progress on our discussions that focused on a range of technology issues,” USMX said in a statement. “Unfortunately, the ILA is insisting on an agreement that would move our industry backward by restricting future use of technology that has existed in some of our ports for nearly two decades ­– making it impossible to evolve to meet the nation’s future supply chain demands."

“The USMX has been clear that we are not seeking technology that would eliminate jobs. What we need is continued modernization that is essential to improve worker safety, increase efficiency in a way that protects and grows jobs, keeps supply chains strong, and increases capacity that will financially benefit American businesses and workers alike."

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Read more:

• International shipping and logistics market update - Week 45/2024
• Trump Wins US Presidential Election – 10 Key Questions for Container Shipping
• New Container Ship Orders to Rise by Over 50% in 2024
• Concerns over Trump presidency impact on container shipping rates
• PIL Orders Five More Dual-Fuel LNG Container Vessels
• Air Canada Reports 18% Growth in Cargo Revenue in Q3
• Maersk's Q3 Profit Soars Despite Modest Increase in Container Volume
• Port of Melbourne sees container volumes increase in September
• Sea-Intelligence: Global Schedule Reliability Drops to 51.4% in September
• International shipping and logistics market update - Week 44/2024
• COSCO schedules: Vietnam - North America in Nov 2024
• SITC updates Vietnam-Intra Asia sailing schedules in Nov 2024
• Pacific Lines updates domestic sailing schedules in Nov 2024

Source: Phaata.com (According to FreightWaves)

Phaata.com - Vietnam's First International Logistics Marketplace

► Find Better Freight Rates & Logistics Services!

International shipping and logistics market update - Week 45/2024

Drewry’s World Container Index for the week of 45/2024 continued to increase by 7% compared to the previous week, reaching USD 3,444/FEU. This freight rate index is 142% higher than the average of 2019 before the pandemic (USD 1,420).

Drewry’s World Container Index Week 45/2024 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

Ocean freight rates from Asia to the West Coast of North America in week

45/2024 decreased slightly to USD 5,141/FEU, equivalent to a decrease of 0.94% compared to the previous week, down 7.60% compared to the previous month, according to Xeneta data.

Demand in early November recovered significantly after a lull following the Golden Week in China. East Coast arrivals are returning to normal levels, with some carriers and services having full or limited capacity until the end of November.

Contractual fixed rates remain stable, and the Peak Season Surcharge (PSS) remains in place and is expected to extend depending on further changes.

Canada:

Labour disputes that have led to strikes are affecting operations at major Canadian ports, including those in British Columbia and the Port of Montreal. Most cargo will not be diverted to the East Coast of Canada as Montreal terminals are also facing strike action that affects 40% of import volumes.
 

Asia-US West Coast Freight rate | Week 45/2024 (Image: Phaata.com)

2. Asia - Northern Europe route:

Freight rates from Asia to North Europe in week 45/2024 increased sharply to $4,098/FEU, equivalent to a 25.02% increase compared to the previous week, up 7.33% compared to the previous month, according to Xeneta data.

Shippers are stepping up bookings to avoid increased freight costs for late November departures, with vessels expected to be full in the coming weeks.

Carriers are expected to cut capacity by 15-18% in November, with ten sailing cancellations announced so far, which will continue to impact market supply.

The first half of November has seen a shortage of space due to multiple sailing cancellations since late October. Cancellations are set to continue into the second half of November, with carriers planning General Rate Increases (GRIs) of $5,400-5,500 per FEU during this period.

Some shipments are being postponed to avoid arrivals falling during the Christmas and New Year holidays in Europe. If this trend continues, it could have a significant impact on the GRI and market dynamics in the second half of November.

The Shanghai Container Freight Index (SCFI) rose by $215/TEU in week 45 to $2,442/TEU. Another increase is expected in week 46, reflecting the GRI in early November.

Asia-Northern Europe Freight rate | Week 45/2024 (Image: Phaata.com)

3. Northern America - Asia route:

Freight rates from North America (West Coast) to Asia in week 45/2024 increased slightly by 0.71% week-on-week to $706/FEU, up 0.28% month-on-month, according to Xeneta data.

US West Coast - Asia Freight rate | Week 45/2024 (Image: Phaata.com)

4. Northern Europe-Asia route:

Freight rates from North Europe to Asia continued to decline slightly in the week of 45/2024 dropped sharply to USD 354/FEU, down 8.05% compared to the previous week, and up 4.42% compared to the previous month, according to Xeneta data.

Northern Europe - Asia Freight rate | Week 45/2024 (Image: Phaata.com)

Find Freight rates here.
 
Find Logistics Companies here.

Read more:

• Trump Wins US Presidential Election – 10 Key Questions for Container Shipping
• New Container Ship Orders to Rise by Over 50% in 2024
• Concerns over Trump presidency impact on container shipping rates
• PIL Orders Five More Dual-Fuel LNG Container Vessels
• Air Canada Reports 18% Growth in Cargo Revenue in Q3
• Maersk's Q3 Profit Soars Despite Modest Increase in Container Volume
• Port of Melbourne sees container volumes increase in September
• Sea-Intelligence: Global Schedule Reliability Drops to 51.4% in September
• International shipping and logistics market update - Week 44/2024
• COSCO schedules: Vietnam - North America in Nov 2024
• SITC updates Vietnam-Intra Asia sailing schedules in Nov 2024
• Pacific Lines updates domestic sailing schedules in Nov 2024
• International shipping and logistics market update - Week 43/2024

Source: Phaata.com 

Phaata.com - Vietnam's First International Logistics Marketplace

► Find Better Freight Rates & Logistics Services!